Company Profile

GroFin is a leading multi-national financier and advisor to small and medium enterprises (SMEs). As growth finance experts since 2004, we invest in the future value and potential of entrepreneurs who own businesses at any stage of development (from start-up through growth to expansions), across all sectors.

Fund overview

Grofin is a specialist finance company that serves the needs of businesses. Finance solution includes business development assistance that makes us a ‘one-stop-shop’ for committed entrepreneurs with viable business ideas – from start-ups, through all the phases of business growth, up to and including established businesses that need up to a $1 million in finance. Grofin enhance the probability of success for entrepreneurs through the provision of appropriate finance and business development assistance.

Applicant criteria:

Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.

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Anglo Khula Mining Fund

The Fund is aimed at assisting small scale, black-owned junior mining companies with funding and technical support for high risk exploration and pre-feasibility phases of mining projects, bringing them to commercially bankable positions.

Company profile:

The Anglo Khula Mining Fund was launched as a R40 million joint partnership between Anglo Zimele, Anglo American’s black empowerment initiative, and Khula Enterprise Finance Ltd, a development finance institution established by the Department of Trade and Industry. The Fund is aimed at assisting small scale, black-owned junior mining companies with funding and technical support for high risk exploration and pre-feasibility phases of mining projects, bringing them to commercially bankable positions.

Fund overview:

Launched in 2003, the Anglo American Khula Mining Fund is a joint initiative between Anglo American and Khula Enterprise Finance Limited, a government-owned entity that promotes small and medium enterprise development.

The fund, which focuses on promoting mining-related investments, is managed by Anglo American Zimele. It is based on an effective and replicable business model that aims to boost the South African mainstream economy and support the South African government’s initiatives by helping emerging black-owned mining operations with commercially viable prospects.

Applicant criteria:

Applications to the fund must be presented in the form an investment proposal, accompanied by a
formal business plan and a thorough due diligence report of the prospect. This should be conducted
by an independent and suitably accredited consultant and may include the following:

A reserve statement signed by a qualified geologist.

A proposed work programme detailing the proposed drilling programme to upgrade the

reserve classification to proven or probable status, whichever is applicable.

A detailed mine plan, signed by a qualified mining engineer.

An assessment of the environmental impact of the proposed operations.

A detailed processing plan signed-off by an engineer or metallurgist specialising in the

appropriate mineral.

A detailed marketing plan supported by sufficient market research or agreements with agents

or clients.

Details of the management team, including the curriculum vitae of the individuals involved.

A detailed financial model reflecting the mine, processing and marketing plan on a monthly basis for the first three years of operations and annual cash flows for the life of the operations.

This should include:

major economic assumptions

price assumptions

identification of major cost drivers

environmental liability provision

tax calculations, including secondary tax on companies

working capital movements

financing assumptions

A strategic plan of the company, including a proposed exit strategy for the fund and future

fund-raising ideas.

Details regarding the corporate structure and BEE status of the company.

Vital Stats

Company Profile

Khula Enterprise Finance Ltd is dedicated to the development and sustainability of small business enterprises in South Africa. A leader in its field, it has a proud history of more than 13 years service of involvement in the rapidly growing and economically vital, small and medium enterprise (SME) sector.

The company is a wholesale finance institution which operates across the public and private sectors, through a network of channels to supply much-needed funding to small business.

Khula’s channels include South Africa’s leading commercial banks, retail financial institutions, specialist funds and joint ventures in which Khula itself is a participant. Its primary aim is to bridge the “funding gap” in the SME market not addressed by commercial financial institutions.

Fund Overview

Khula SME Fund was established to provide early-stage and expansion capital to SMEs.

IDC Transformation and Entrepreneurship Scheme

The Transformation and Entrepreneurship Scheme has been set up to finance marginalised groups in South Africa. Our aim with this scheme is to stimulate and develop largely small and medium enterprises, and make the mainstream economy accessible to marginalised groups – women, people with disabilities, and workers and communities.

Established in 1940, we are a national development finance institution set up to promote economic growth and industrial development. We are owned by the South African government under the supervision of the Economic Development department.

Fund Overview

The Transformation and Entrepreneurship Scheme has been set up to finance marginalised groups in South Africa. Our aim with this scheme is to stimulate and develop largely small and medium enterprises, and make the mainstream economy accessible to marginalised groups – women, people with disabilities, and workers and communities.

The Transformation and Entrepreneurship Scheme is designed to help entrepreneurs access finance to develop and grow their business. We offer funding for start-up businesses, expansions or expansionary acquisitions. Along with this, we offer business support, by way of a grant, helping with business planning, training and mentorship.

Applicant criteria:

There are general criteria set out for all funds:

Applicants must be able to demonstrate that their business is economically viable and financially sustainable.

The business must be in one of the IDC’s mandated sectors.

Provision must be made for the employment of people with disabilities.

Funding provided will generally not be less than R1-million.

Specific guidelines have also been drawn up for each of the five funds:

Women Entrepreneurial Fund

This fund applies to businesses with a minimum shareholding by women of at least 50%; shareholding between 25% and 50% will be considered on revised terms

It can apply to a start-up business or for expansions;

It is available to new entrants – that is, those shareholders with a direct or indirect total net asset base of less than R15-million;

The business must include women in its operations and management; and

Finance is provided to businesses with a total asset base of up to R80-million and the maximum amount we will finance under this fund is R30-million a transaction.

This fund applies to companies where a person or people with disabilities have a minimum shareholding of 50% plus one share; shareholding between 25% and 50% will be considered on revised terms

Applicants must demonstrate operational and management involvement;

The maximum amount that can be financed under this fund is R8-million and applies to start-up and existing companies that wish to expand; and

Only new entrants qualify for financing – that is, those shareholders with a direct or indirect total net asset base of less than R15-million.

People with Disabilities Fund

Equity Contribution Fund

This funding is available for new black entrants where shareholders hold a direct or indirect total net asset base of less than R1.5-million;
Only black individuals or individuals of a 100% black-owned company. In the case where the company is not wholly black-owned, the black shareholding must be 25% plus one;
This fund applies to start-up businesses or existing companies that wish to expand Black shareholders who are financed under the scheme must be involved in both the operations and management of the company;
A maximum limit of R10-million has been set for each application; and
Finance is provided to businesses with a total asset base of up to R80-million.

Development Fund for Workers

This fund provides finance to Broad-based Black Economic Empowerment transactions for at least 85% owned black worker groupings to acquire shareholding in IDC funded projects;
It applies to black low-skilled workers who may have little prospect of accessing equity;
Businesses that can apply may be start-ups, or companies looking to expand ;
The maximum amount that can be financed under this fund is R15-million per transaction;
There are no restrictions on the business size;
The workers must acquire a meaningful stake in the business.

Community Fund

This fund provides finance to marginalised communities that want to acquire shares in a company funded by IDC;
These businesses can be start-up, or companies looking to expand. The maximum amount that can be financed under this fund is R10-million; and
There are no restrictions on the business size but it is a requirement that the community acquires a meaningful stake in the business.